Market Hopes Trump Can Reach Trade Deal Before Good Friday
The market got a boost from Trump optimism about a handful of trade deals under consideration.
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Tuesday was a slow day for tariff news, which helped produce the narrowest trading range in the S&P 500 since March 27.
Despite the drop in volatility, breadth was positive, and the Russell 2000 IWM and Nasdaq 100 QQQ managed small gains. The Magnificent Seven MAGS and S&P 500 SPY lagged.
Comments about some lack of progress in trade negotiations with the European Union produced an intraday dip, but Press Secretary Karoline Leavitt stated that the Trump trade team is currently considering 15 trade deals and expects that the first deal will be announced "very soon." Market participants are hoping this will hit before the Good Friday holiday, and that is what is helping the market right now.
Another positive is that bonds have strengthened, and interest rates have moved back down. The dollar also had a positive day, and JPMorgan JPM CEO Jamie Dimon stated that the bond liquidation may be over and that he is seeing very little stress at the consumer level.
There are growing concerns about the economy, and not all of that is due to the anticipated impact of tariffs. With earnings season picking up, we will start to hear how management views what lies ahead. So far, the reaction to earnings — primarily in the banking sector — has been fairly mild.
The market is all about tariff news, but we have seen some bottom-fishing in a few places, such as biotechnology, financials and entertainment.
Overall, market sentiment is nervous and negative, but that may not be a bad thing if we get positive tariff or trade news.
Have a good evening. I’ll see you tomorrow.
At the time of publication, DePorre had no positions in any securities mentioned.
